The Federal Trade Commission and U.S. Justice Department declined to block or further investigate the deal after the premerger review required under the Hart-Scott-Rodino Act.
XLHealth’s Medicare plans cover 113,000 members in Arkansas, Georgia, Maryland, Missouri, South Carolina and Texas, and the company plans to expand into Illinois, Indiana, Iowa, New Mexico, New York and Wisconsin in 2012. UnitedHealth said the company plans to build on XLHealth’s model of care management for beneficiaries with chronic illness and other special needs, as well as “dual eligibles,” who qualify for both Medicaid and Medicare.
Other national insurance companies likewise have moved in recent months to acquire smaller companies that specialize in Advantage plans. Cigna agreed to pay $3.8 billion to buy Nashville-based HealthSpring, an Advantage carrier that operates in 11 states.
Humana announced plans to buyMD Care and Arcadian Management Services.
WellPoint, meanwhile, acquired Cerritos, Calif.-based CareMore, a company with Advantage plans and clinics in California, Arizona and Nevada.